According to dpa, a price cap of $100 per barrel is planned.
(Photo: IMAGO/Panthermedia)
Brussels The EU countries have agreed on a proposal by the EU Commission that provides for a price cap for Russian oil products. This was announced by the Swedish EU Presidency on Friday evening.
An agreement reached by government officials on Friday provides for a price cap of initially USD 100 per barrel (159 litres), as confirmed by several diplomats in Brussels. That’s the equivalent of around 91 euros at the moment.
For comparison: on international exchanges, a barrel of diesel for delivery to Europe was last traded at prices equivalent to around 100 to 120 euros. A price ceiling of initially $45 (€41) per barrel will apply to lower-quality products.
With the upper limit, the EU wants to further cut Russia’s financial sources for the war in Ukraine. In early December, the EU, the G7 and Australia imposed a $60 cap on Russian crude.
In order to enforce the price cap, it should be regulated that in future services important for the export of Russian oil products may only be provided with impunity if the price of the exported oil does not exceed the price cap.
Western shipping companies could use their ships to continue transporting Russian oil products to third countries such as India. The regulation should also apply to other important services such as insurance, technical assistance and financing and brokerage services.
Russia should no longer benefit from rising oil prices
The aim of the price cap is to prevent new price jumps on the international markets and thus also to relieve third countries. In addition, it should be ensured that Russia no longer benefits from price increases for oil products and can thus fill its war chest. According to estimates by the EU Commission, the upper price limit for Russian crude oil deliveries to third countries, which was introduced last December, costs Russia around 160 million euros a day.
The price cap is intended to complement the oil embargo against Russia that the EU decided in June. Among other things, this provides for a ban on the purchase, import or forwarding of crude oil and certain petroleum products from Russia to the EU. The restrictions apply to crude oil from December 5 and to petroleum products such as diesel from Sunday. However, there are some exceptions, for example for Hungary.
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